ENSIGN GROUP, INC Income Taxes Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Current: | |||||||||||||||||
| Federal | $ | 102,843 | $ | 70,144 | $ | 73,092 | |||||||||||
| State | 25,372 | 16,857 | 17,301 | ||||||||||||||
| $ | 128,215 | $ | 87,001 | $ | 90,393 | ||||||||||||
| Deferred: | |||||||||||||||||
| Federal | (12,689) | 582 | (22,280) | ||||||||||||||
| State | (4,168) | 53 | (5,201) | ||||||||||||||
| $ | (16,857) | $ | 635 | $ | (27,481) | ||||||||||||
| TOTAL | $ | 111,358 | $ | 87,636 | $ | 62,912 | |||||||||||
| Year Ended December 31, | ||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||
| Income tax expense at statutory rate | $ | 95,681 | 21.0 | % | $ | 81,080 | 21.0 | % | $ | 57,280 | 21.0 | % | ||||||||||||||
State income taxes - net of federal benefit(a) | 16,752 | 3.7 | 13,353 | 3.5 | 9,536 | 3.5 | ||||||||||||||||||||
| Non-deductible expenses | 12,341 | 2.7 | 6,848 | 1.8 | 9,321 | 3.4 | ||||||||||||||||||||
| Equity compensation | (12,231) | (2.7) | (12,631) | (3.3) | (11,629) | (4.2) | ||||||||||||||||||||
| Other adjustments | (1,185) | (0.3) | (1,014) | (0.3) | (1,596) | (0.6) | ||||||||||||||||||||
| TOTAL INCOME TAX PROVISION | $ | 111,358 | 24.4 | % | $ | 87,636 | 22.7 | % | $ | 62,912 | 23.1 | % | ||||||||||||||
| (a) State taxes in California made up the majority (greater than 50 percent) of the tax effect in this category. | ||||||||||||||||||||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Deferred tax assets (liabilities): | |||||||||||
| Accrued expenses | $ | 95,630 | $ | 76,419 | |||||||
| Revenue related reserves | 34,898 | 27,023 | |||||||||
| Tax credits | 138 | 597 | |||||||||
| Insurance | 27,224 | 24,817 | |||||||||
| Lease liability | 532,035 | 470,313 | |||||||||
| State taxes | 792 | — | |||||||||
| $ | 690,717 | $ | 599,169 | ||||||||
| Valuation allowance | (21) | (93) | |||||||||
| TOTAL DEFERRED TAX ASSETS | $ | 690,696 | $ | 599,076 | |||||||
| State taxes | — | (197) | |||||||||
| Depreciation and amortization | (67,348) | (57,253) | |||||||||
| Prepaid expenses | (9,128) | (6,390) | |||||||||
Right-of-use asset | (531,082) | (468,955) | |||||||||
| TOTAL DEFERRED TAX LIABILITIES | $ | (607,558) | $ | (532,795) | |||||||
| NET DEFERRED TAX ASSETS | $ | 83,138 | $ | 66,281 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 4, 2026 | Showing above |
| 2024 | Feb 5, 2025 | |
| 2023 | Feb 1, 2024 | |
| 2022 | Feb 2, 2023 | |
| 2021 | Feb 9, 2022 | |
| 2020 | Feb 3, 2021 | |
| 2019 | Feb 5, 2020 | |
| 2018 | Feb 6, 2019 | |
| 2017 | Feb 8, 2018 | |
| 2016 | Feb 8, 2017 | |
| 2015 | Feb 10, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.